Which of the following statements are examples of positive economic analysis? Which are examples of normative analysis?
Question:
Which of the following statements are examples of positive economic analysis? Which are examples of normative analysis?
a. A devaluation of the U.S. dollar would increase exports from the United States.
b. Increasing the federal tax on gasoline would cause shipping costs in the United States to increase.
c. Florida should devote all revenues from its state lottery to improving public education.
d. Eliminating the trade embargo with Cuba would increase the number of Cuban cigars available in the United States.
e. As a public safety measure, the state of Texas should not pass legislation that allows people with concealed handgun permits to carry concealed weapons on college campuses.
Step by Step Answer:
Principles of Macroeconomics
ISBN: 978-0134078809
12th edition
Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster